In this blog post, we round-up forthcoming developments in the UK and at EU and International levels in financial services regulation which are expected for August 2021.
On 15 July, the UK Financial Conduct Authority (FCA) published its 2021/22 Business Plan. The FCA’s – still fairly new CEO – Nikhil Rathi took the opportunity to deliver an ambitious and wide ranging statement. He set out the new and existing challenges that the FCA faced as well as the clear changes he, and his executive team, were looking to make to the way in which the regulator operates. Continue reading
In this blog post, we round-up forthcoming developments in the UK and at EU and International levels in financial services regulation which are expected for June 2021.
The New York (NY) State Legislature has passed a statutory solution to tackle so-called “tough legacy” LIBOR contracts, to reduce the risks associated with the transition away from USD LIBOR: Senate Bill 297B/Assembly Bill 164B. This is very welcome news given the widespread use of NY law in financial contracts.
The FCA today made its much anticipated announcement that all LIBOR settings will either cease to be provided by any administrator or will no longer be representative:
- immediately after 31 December 2021, in the case of all sterling, euro, Swiss franc and Japanese yen settings, and the 1-week and 2-month US dollar settings; and
- immediately after 30 June 2023, in the case of the remaining US dollar settings.
In this blog post, we round-up forthcoming developments in the UK and at EU and International levels in financial services regulation which are expected for March 2021.
On 2 February 2021, the European Council paved the way for the EU’s legislative solution for the transition of legacy LIBOR contracts to become law, by adopting amendments to the Benchmark Regulation (EU) 2016/1011 (BMR), which will now enter into force and apply from 13 February 2021. Continue reading
In this blog post, we round-up forthcoming developments in the UK and at EU and International levels in financial services regulation which are expected for January 2021. Continue reading
We are pleased to announce the launch of FSR Outlook 2021: Paving the Way Forward.
In this annual publication, we survey the regulatory landscape in 2021 and identify some themes that we expect to be at the core of regulatory priorities globally in the next 12 months.
2020 has been dominated by Covid-19, political uncertainty, and the preparations for Brexit – which are likely to continue to cast a long shadow over 2021. Although some second-guessing of crisis-driven responses is probably inevitable (“2020 hindsight”), the hope is that regulators will also focus on the benefits and opportunities furnished by the adoption of digital solutions in response to the pandemic, and how the financial system can best help support the global economic recovery.
Our Global Outlook for 2021 looks at nine different areas, ranging from doing something useful about culture and tackling the “alphabet soup” of ESG standards, to maintaining market integrity in the time of Covid-19, and the final countdown for LIBOR. Protecting investors through a focus on end outcomes, managing innovation in payments, and ensuring digital operational resilience are of course high on the list. Perhaps unsurprisingly, part of the regulatory response to 2020’s pandemic has been a trend towards increased regulatory intervention, and we expect the number of investigations against individuals to continue to grow, not least given continuing regulatory focus on making senior managers accountable.
View the FSR Outlook 2021 here.
With LIBOR due to disappear by end-2021, work has been underway to facilitate the transition from LIBOR and other IBORs to alternative risk free rates (or RFRs). The derivatives market has been at the forefront of the transition and is some distance further ahead than other financial markets. In particular, ISDA has recently published the 2020 IBOR Fallbacks Protocol and IBOR Fallbacks Supplement, which introduce hardwired fallbacks from IBORs to relevant RFRs for new products and legacy products. Continue reading